The environment has been challenging for equity markets since the beginning of the year. Very few indeed have for now fully recovered from their late January sell-off, and recent developments […]
In an almost unnatural situation, with the S&P 500 Index going up whatever happened, at the end of January the correction arrived and the excesses were finally eradicated. But while professional traders had some relief with the arrival of this event, they were also concerned about the way the fall occurred: unexpectedly too fast and deep, almost -12% in a couple of weeks, and with an unthinkable increase in volatility.
Looking to the financial markets it is always a human game. Fear and greed are always present. In these last periods we can note two human sentiments facing each other: on the one hand, increasing optimism, which is an anticipation of future greed: stock markets continue to rise steadily with such low volatility that the market’s fractality has been temporarily replaced by an incredible linearity.
A number of reports have come out over the last few years which put forward the view that investors will have to come to terms with lower returns going forward than they are used to from the past several decades.